The National Company Law Appellate Tribunal (NCLAT) has said that any attachment of property alleged to be “proceeds of crime” by the Directorate of Enforcement (ED) cannot be undone under the insolvency law.
“The Insolvency and Bankruptcy Code (IBC) cannot override the Prevention of Money Laundering Act (PMLA)”, said the appellate tribunal’s 36-page-order in response to a plea filed by the resolution professional of Dunar Foods, challenging a National Company Law Tribunal (NCLT) ruling which had refused to direct the ED to release provisionally-attached assets of the debt-ridden company.
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Citing section 238 of IBC, a three-member NCLAT bench said…
